Forex Analysis: AUD/USD Classic Technical Report 12.11.2012

Prices broke above key long-term trend resistance set from late July 2011, hinting at a significant upside reversal in progress. A bearish Rising Wedge pattern remains valid however and negative RSI divergence warns of ebbing upside momentum. A break above the wedge top (now at 1.0517) initially targets the August 9 close at 1.0578. Alternatively, a drop below trend line resistance-turned support (1.0461) exposes the wedge bottom at 1.0428.